entrepreneurial orientation, innovation capabilities and export performance
DESCRIPTION
Entrepreneurial Orientation, Innovation Capabilities and Export Performance. Joaquín Alegre Professor in I nnovation Management University of Valencia [email protected] [email protected]. Valencia. Valencia… A venue for international conferences. EIBA 2009 OLKC 2012 - PowerPoint PPT PresentationTRANSCRIPT
Entrepreneurial Orientation, Innovation Capabilities and Export Performance
Joaquín AlegreJoaquín AlegreProfessor in Innovation ManagementProfessor in Innovation Management
University of ValenciaUniversity of Valencia
[email protected]@uv.es
[email protected]@sussex.ac.uk
Valencia
Valencia… A venue for international conferences
- EIBA 2009
- OLKC 2012
- EURAM 2014 (http://www.euram-
online.org/conference/2014/)
University of Valencia
Created in 1499 Over 55,000 students (Degrees & Masters) 2nd most ‘popular’ destination for Erasmus students Teaching in Spanish, Catalan & English Doctoral programmes with Latin America
Topic Relevance & Research objectives
Entrepreneurship as well as innovation and exports are widely viewed as an important stimulus of positive outcomes at both firm and society levels (Ireland & Webb, 2007)
EO-Performance Lit. (Rauch, Wiklund, Lumpkin & Frese, 2009; Blackburn & Kovalainen, 2009)
OBJECTIVE 1: Examining export performance as an outcome of EO (Yeoh & Jeong, 1995)
OBJECTIVE 2: Proposing 3 types of innovation capabilities: technology, market and design
OBJECTIVE 3: Examining the role of innovation capabilities as mediators in the relationship between entrepreneurial orientation and export performance?
Entrepreneurial Orientation, Innovation Capabilities and Export Performance
ENTREPRENEURIAL ORIENTATION can be considered a management attitude that seeks to accentuate innovation, flexibility, and responsiveness driven by the perception of opportunity (Guth and Ginsberg, 1990; Jogaratnam et al., 1999).
Conceptual background
EO is characterised by a management that (Covin & Slevin, 1989; Lumpkin & Dess, 1996):
• Innovates: to engage in and support new ideas.• Has an aggressive competitive orientation (Proactiveness): to anticipate and act on future needs by searching for new opportunities.• Has a strong risk taking propensity: to commit significant resources to opportunities that have a reasonable chance of failure.
Entrepreneurial Orientation, Innovation Capabilities and Export Performance
Conceptual background
EO Firm Performance (Zahra & Covin, 1995; Wiklund, 1999)
Intermediate steps? (e.g. Wang, 2008)
Entrepreneurial Orientation, Innovation Capabilities and Export Performance
Wang (2008). Entrepreneurship, Theory & Practice
Conceptual background… Previous findings
Entrepreneurial Orientation, Innovation Capabilities and Export Performance
Conceptual background
EO Firm Performance (Zahra & Covin, 1995; Wiklund, 1999)
EO Exports (Yeoh & Jeong, 1995)
- Export performance as a performance variable.
- Especially important at present for SMEs in Southern Europe!
Entrepreneurial Orientation, Innovation Capabilities and Export Performance
H1
.
.
Entrepreneurial
Orientation
Innovation
PerformanceExport intensity
.
.
H2
Organizational
Learning Capability
H3
H4
Conceptual background… Previous findings
Fernández-Mesa & Alegre, EIBA 2012
Entrepreneurial Orientation, Innovation Capabilities and Export Performance
Conceptual background… Previous findings
Experimentation
Interaction with the external environment
Dialogue
Participative decision making
Organisational Learning
Capability
Risk Taking
The degree to which new ideas and suggestions are attended to and dealt with sympathetically.
The tolerance of ambiguity, uncertainty, and errors.
The degree of relationships with the external environment.
The sustained collective inquiry into the processes, assumptions, and certainties that make up everyday experience.
The level of influence employees have in the process of decision making.
Chiva & Alegre (2009). British Journal of Management
Entrepreneurial Orientation, Innovation Capabilities and Export Performance
Conceptual background… Previous findings
PRODUCT INNOVATION
EFFICACY
INNOVATION PROJECTS EFFICIENCY
Degree of sucess of product innovation
Efforts carried out to achieve this degree of success
INNOVATION PERFORMANCE
PROCESS INNOVATION
EFFICACY
Degree of sucess of process innovation
Oslo Manual (2005) / Alegre et al., (2012). International Small Business Journal
Entrepreneurial Orientation, Innovation Capabilities and Export Performance
Conceptual background… Previous findings
2004. Perceptual data
2006. Objective data
150 Italian and Spanish SMEs
Entrepreneurial
Orientation
Export
Intensity
2 =135.02 p=0.000; d.f.=65
NFI=0.99; NNFI=0.99; CFI=0.99; RMSEA=0.085
R2=0.204
0.43**
Size
0.14 n.s.
Location
-0.03 n.s.
Entrepreneurial Orientation, Innovation Capabilities and Export Performance
Conceptual background… Previous findings
Entrepreneurial
Orientation
Organizational
Learning Capability
Innovation
Performance
Export
Intensity
Size
.
.
2 =1893.974 p=0.000; d.f.=1065
NFI=0.99; NNFI=0.99; CFI=0.99; RMSEA=0.07
R2=0.628
0.34**
0.35**
-0.10 n.s.
0.52**
0.15**
0.69**
0.04 n.s.
R2=0.549
R2=0.118
Location
0.09n.s.
0.14**
0.02**
2004. Perceptual data
2006. Objective data
150 Italian and Spanish SMEs
Entrepreneurial Orientation, Innovation Capabilities and Export Performance
INNOVATIONCAPABILITIES
TECHNOLOGYCAPABILITIES
MARKETCAPABILITIES
DESIGNCAPABILITIES
Schmookler (1966)
+ design in some industries
Conceptual background… Our next step forward
Entrepreneurial Orientation, Innovation Capabilities and Export Performance
Our research model: direct link
H1
Entrepreneurial
Orientation
Export
performance
.
Size Location
Entrepreneurial Orientation, Innovation Capabilities and Export Performance
2004. Perceptual data
2012. Perceptual data
Research model: mediation
H1
.
Entrepreneurial
Orientation
Innovation
CapabilitiesExport intensity
.
H2
Size LocationTechnology
Capabilities
Market
CapabilitiesDesign
Capabilities
Entrepreneurial Orientation, Innovation Capabilities and Export Performance
2004. Perceptual data
2012. Perceptual data
► Target population: Italian and Spanish ceramic tiles producers
Italian Ceramics industrial district (Sassuolo)
Spanish Ceramics industrial district (Castellón)
Methods. Data collection procedure
Entrepreneurial Orientation, Innovation Capabilities and Export Performance
Methods. Data collection procedure
► Target population: Italian and Spanish ceramic tiles producers
World leaders in technology and design.
Innovating Industry.
Top world exporters.
Similar characteristics in both industrial districts: Geographical
concentration, SMEs, Internationalization.
Single industry study: It has the advantage of analyzing an
homogeneous population.
Innovation, and internationalization processes might differ
substantially from one industry to another (technology, markets, design
issues, etc…).
Entrepreneurial Orientation, Innovation Capabilities and Export Performance
► Survey #1 (2004)
► Sample: 182 firms
100 Spanish firms
82 Italian firms
► EO: 1 dimension & 9 items (Covin & Slevin, 1989)
Answered by General Manager in 2004
► Pre-test: 4 technicians from ITC (Spanish Technological Institute in Ceramics)
► Non response bias assessment (Comparison for turnover & no. of employees)
Entrepreneurial Orientation, Innovation Capabilities and Export Performance
Methods. Data collection procedure & Measures
Methods. Data collection procedure & Measures
► Survey #2 (2012)
► Sample: 226 firms111 Spanish firms
105 Italian firms
► Innovation capabilities: - Technology Capabilities (Huang, JBR, 2011)
- Market Capabilities (Vorhies et al., SMJ, 2009)
- Design Capabilities (Chiva & Alegre, JPIM, 2009)
Answered by Operarions Manager in 2012
► Export performance (Lages et al., JIM, 2009)
Answered by CEO in 2012
► Pre-test: 4 technicians from ITC (Spanish Technological Institute in Ceramics)
► Non response bias assessment (Comparison for turnover & no. of employees)
Entrepreneurial Orientation, Innovation Capabilities and Export Performance
Results…
Innovation
Capabilities
.
.
2 =191,844 p=0.000; d.f.=74
NFI=0.891; NNFI=0.913; CFI=0.929; RMSEA=0.084
0.87**
Technology
Capability
Marketing
Capability
Design
Capability
0.77**
0.82** R2=0.752
AFC Innovation Capabilities
N=226
Entrepreneurial Orientation, Innovation Capabilities and Export Performance
Results…
Innovation
Capabilities
Export
Performance
.
2 =253.63 p=0.000; d.f.=115
NFI=0.906; NNFI=0.936; CFI=0.946; RMSEA=0.073
R2=0.292
0.86**
0.54**
Technology
Capability
Marketing
Capability
Design
Capability
0.80**
0.81**
N=226
Entrepreneurial Orientation, Innovation Capabilities and Export Performance
Expected Results: mediating model
H1
.
.
Entrepreneurial
Orientation
Innovation
CapabilitiesExport intensity
.
.
H2
Size LocationTechnology
Capabilities
Market
CapabilitiesDesign
Capabilities
Entrepreneurial Orientation, Innovation Capabilities and Export Performance
Findings & Discussion Exports be an outstanding performance concept, especially for SMEs in crisis
times
Proposal of Innovation capabilities as a three-dimensions concept +
Confirmatory analysis
Deepening the relationship between innovation and exports in manufacturing
industries
We also expect to confirm:
- EO is a managerial attitude that could be considered as an important antecedent of
Innovation Capabilities and Export outcomes.
- EO could be found useful in explaining intra-industry performance differences in
terms of export performance.
Entrepreneurial Orientation, Innovation Capabilities and Export Performance
Managerial implications
EO & Innovation Capabilities: Sucess factors that depend on deliberate managerial action.
How costly is it to develop Innovation Capabilities in a firm?
Is it an option? Isn’t it a way of adapting to current times”?
Limitations & Future Research Adding more mediating variables to the EO-performance link
Single industry analysis Other industries
Case studies to obtain a more thorough picture of the situation that allows
focusing on the whole processes of learning and innovation.
Entrepreneurial Orientation, Innovation Capabilities and Export Performance
Entrepreneurial Orientation, Innovation Capabilities and Export Performance
Joaquín AlegreJoaquín AlegreProfessor in Innovation ManagementProfessor in Innovation Management
University of ValenciaUniversity of Valencia
[email protected]@uv.es
[email protected]@sussex.ac.uk